Republican senators lashed out Thursday against the Commerce Department for demanding companies that apply for new funding to compete with China in semiconductor manufacturing also meet unrelated benchmarks for providing child care and labor union set-asides.

The senators said the initiatives have nothing to do with competing against China and may chase away some U.S. manufacturers that the government should be promoting.

Led by Sen. Steve Daines of Montana, the lawmakers said the administration’s moves also defy Congress’ intent last year when it enacted a law allo …